CRANBURY, N.J., September 27, 2007 /PRNewswire/ -- Palatin
Technologies, Inc. announced today positive results from an at-home
Phase 2 trial evaluating bremelanotide for the treatment of female
sexual arousal disorder (FSAD). The objective of this exploratory
study was to identify potential efficacy endpoints for future
studies and to evaluate the safety of intranasal (IN)
bremelanotide, relative to placebo and under the conditions of home
use, for the treatment of FSAD in pre- and postmenopausal
women.

"We are pleased with the overall data from this exploratory
trial. The efficacy response was consistent and robust across all
domains, particularly desire and arousal. We look forward to
discussing the program's further development with the FDA,
including future dose-ranging studies to improve the drug's
benefit/risk profile," stated Dr. Trevor Hallam, Executive Vice
President of Research & Development for Palatin.

Study Highlights

The trial was double-blinded, placebo-controlled and enrolled 76
premenopausal and 87 postmenopausal women who were followed for one
month to determine their baseline level of sexual dysfunction. The
patients were then randomized to receive IN doses of either placebo
or 10 mg of bremelanotide. Changes in their level of sexual
function were assessed over a two month period using the Female
Sexual Encounter Profile (FSEP), the Female Sexual Function Index
(FSFI) and the Female Sexual Distress Score (FSDS). The first dose
was given in the clinic. Prespecified changes in blood pressure, as
well as emesis, led to mandatory discontinuation. All endpoints
were exploratory without preset statistical goals.

Postmenopausal Patient Efficacy Results

In the Intention-to-Treat Population, the bremelanotide treated
postmenopausal women showed statistically significant improvements,
compared to baseline and placebo, in desire and arousal success
rates, and overall satisfaction at one and two months. In these
patients, the FSFI domains of arousal, desire and orgasm were
statistically significantly improved compared to placebo at one
month. The arousal and orgasm domains were statistically
significantly improved compared to placebo at one and two
months.

Premenopausal Patient Efficacy Results

In the Intention-to-Treat Population, the bremelanotide treated
premenopausal women showed statistically significant improvements,
compared to baseline, in desire and arousal success rates, and
overall satisfaction at one and two months. However, while there
was a consistent trend to greater improvement in these measures in
bremelanotide patients compared to placebo treated patients, the
differences were not statistically significant between
bremelanotide and placebo treated patients because the placebo
responses were themselves statistically significantly improved
compared to baseline.

Pre- and Postmenopausal Safety Results

Adverse events where the incidence was higher than the incidence
associated with placebo primarily included nausea, emesis,
flushing, blood pressure increase, headache and nasal symptoms.
There were no serious adverse events related to bremelanotide. The
most common cause for mandatory discontinuation was
protocol-specified blood pressure increase criteria.

Preliminary Conclusions

Based on these data, Palatin is encouraged about the use of
bremelanotide for FSAD and believes that future studies in patients
with FSAD are warranted. Future dose-ranging studies at 10 mg and
lower will be necessary to improve the drug's benefit/risk ratio.
Palatin plans to engage the FDA in discussions regarding future
development later this calendar year.

Dr. Eileen Palace, The Center for Sexual Health, Metairie, LA,
stated, "With no approved medical therapies to treat patients with
FSAD, I believe the results of the clinical trials with
bremelanotide warrant further development." Dr. Palace is an
investigator who enrolled patients in the study and a member of the
Bremelanotide Scientific Advisory Board.

Palatin's executive management will present additional detail of
the results of this study at future scientific meetings.

About Female Sexual Dysfunction (FSD)

FSD includes four disorders, hypoactive sexual desire disorder,
female sexual arousal disorder, dyspareunia and anorgasmia. To
establish a diagnosis of FSD, these syndromes must be associated
with personal distress, as determined by the affected woman. A
February 10, 1999 study published in the Journal of the American
Medical Association, titled, "Sexual Dysfunction in the United
States: Prevalence and Predictors," states that approximately 43
percent of the postmenopausal female population suffers from some
form of FSD.

About Palatin Technologies, Inc.

Palatin Technologies, Inc. is a biopharmaceutical company
focused on discovering and developing targeted, receptor-specific
small molecule and peptide therapeutics. The Company's internal
research and development capabilities, anchored by its proprietary
MIDAS(TM) technology, are fueling product development. Palatin's
strategy is to develop products and then form marketing
collaborations with industry leaders in order to maximize their
commercial potential. The Company currently has collaborations with
AstraZeneca and the Mallinckrodt division of Covidien. For
additional information regarding Palatin, please visit the
Company's website at http://www.palatin.com.

Forward-looking Statements

Statements about the Company's future expectations, including
statements about its development programs, the significance of the
results of clinical trials, the conduct of future clinical trials,
proposed indications for its product candidates, pre-clinical
activities, marketing collaborations, and all other statements in
this document other than historical facts, are "forward- looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, Section 21E of the Securities Exchange Act of 1934 and as
that term, is defined in the Private Securities Litigation Reform
Act of 1995. The Company intends that such forward-looking
statements shall be subject to the safe harbors created thereby.
Palatin's actual results may differ materially from those discussed
in the forward-looking statements for various reasons, including,
but not limited to the Company's ability to fund development of its
technology, ability to establish and successfully complete clinical
trials and pre-clinical studies and the results of those trials and
studies, dependence on its partners for certain development
activities, need for regulatory approvals and commercial acceptance
of its products, ability to recommence marketing and gain
commercial acceptance of NeutroSpec(R), ability to protect its
intellectual property, and other factors discussed in the Company's
annual report and Form 10-K for the year ended June 30, 3007 and
other periodic filings with the Securities and Exchange Commission.
The Company is not responsible for updating for events that occur
after the date of this press release.